Valuing Australia’s Creative Industries

8/13/2019 Valuing Australias Creative Industries

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ValuingAustralias

CreativeIndustriesFinal Report

Creative IndustriesInnovation Centre

December 2013


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This report has been prepared for the

Creative Industries Innovation Centre.

SGS Economics and Planning has taken

all due care in the preparation of this

report. However, SGS and its associated

consultants are not liable to any person

or entity for any damage or loss that has

occurred, or may occur, in relation to that

person or entity taking or not taking action

in respect of any representation, statement,

opinion or advice referred to herein.

SGS Economics and Planning Pty Ltd

ACN 007 437 729

www.sgsep.com.au

Offices in Brisbane, Canberra, Hobart,

Melbourne, Sydney


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Valuing Australias Creative Industries | 3

Table ofcontents

Ministers introduction 5

A word from the Director 6

Executive summary

Introduction 7

Importance of creative industries 7

Basic definition 7

Best practice approach to definition and measurement (the Nesta method) 7

A profile of Australias creative industries 8

The creative industry segments 11

The value of Australias creative industries 13

Closing remarks 13

1. Introduction

1.1 Background 14

1.2 Scope of the work 15

1.3 Report structure 16

2. What are the creative industries?

2.1 Introduction 17

2.2 Leading approaches to defining creative industries 17

2.3 Current best practice 19

3. Application of the Nesta method

3.1 Introduction 23

3.2 Defining creative occupations 23

Subjective nature of Nesta method 26

3.3 Creative intensity 27

3.4 Defining creative industries 30

3.5 Reverse intensity 26

4. Profile of Australias creative industries

4.1 Creative industries at the macro scale 33 Industry gross product and growth 33

Employment in the creative industries 35

4.2 Employment in creative occupations 38

4.3 Creative industries workforce 39

4.4 Embedded creatives 41

4.5 Creative industry enterprises 43

Business numbers 43

Scale of creative industry businesses 45

Creative industry turnover 46

4.6 Creative industry locations 47

Location of the creative workforce 47

Location of creative businesses 48


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Our creative industries give our country a two-fold benefit.

As this report shows, these industries contribute more than $90

billion to our economy annually in turnover, add more than $45

billion to GDP and generate annual exports of $3.2 billion.

And quite separate is the intangible but undeniable worth

of knowing our nation creates great software, films, T V, radio,

music, theatre, dance, design, media, writing, marketing and

architecture.

We are proud to do what we can to support our creative

industries through our Enterprise Connect programs CreativeIndustries Innovation Centre (CIIC), in partnership with the

University of Technology, Sydney.

Over the last four years, the CIIC has worked with more than

1,500 Australian creative enterprises to improve their business

capability. We have seen first-hand the value that they bring to

other businesses across the Australian economy to assist them

to compete in a global economy.

This report documents the important contribution of the

creative industries to the national economy. It also shows for the

first time the growth of the creative workforce in Australia and

its distribution across all sectors of the economy.It is important to have a clear picture of the value of the

creative industries to our economy and t he next step is to

ensure we are drawing links across innovation to ensure we are

getting the most out of these industries in terms of productivity

and global competitiveness.

These agile, sophisticated and digitally savvy businesses and

the creative professionals they support are more significant in

number than you might expect. In 2011 there were more than

600,000 people working in the creative industries in Australia

and over 120,000 creative businesses.

This report comes at an important time as we work diligently

and intelligently to retain and enhance our creative industries

so they can keep doing what they do best employing smart andhardworking Australians and contributing to the vibrant culture

of our country.

Minister for Industry

Ian Macfarlane

Australia dependsnot only onits traditionalindustries, buton its creativityand innovation

qualities onwhich our vibrantcreative industriesare built.


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6 | Valuing Australias Creative Industries

A wordfrom the

DirectorThe Creative Industries Innovation Centre (CIIC) has worked

with over 1,500 creative enterprises since 2009. This has given

us a unique vantage point indeed a privileged one, as we

have seen first-hand what makes creative businesses tick: the

strengths and opportunities as well as weaknesses and threats

that are shaping their future.

The insights we have gained over this time now provide avaluable resource for individual businesses, allowing t hem to

benchmark against their peers. At t he same time, they provide

an invaluable resource for industr y, government and educators

to better understand how to navigate, prepare and leverage the

dynamics of a global economy.

As we develop sufficient data sets across creative industry

sectors, the CIIC produces forensic reports that deliver much-

needed analysis of each sector. There are nine forensic reports

to date which will increase in value over time as our data set

deepens and we work with industry to validate and expand

these industry insights.

However, this sharp focus on individual businesses is not

enough. We need to focus on the big picture the sum of t he

parts providing greater detail and analysis of the creative

economy landscape.

The following report validates and values the skills and

capabilities of the creative industries in economic terms. It has

the benefit of being internationally comparable, and clearly

shows the increasing demand for creative skills sets across all

industry sectors in our economy, as evidenced by the growing

number of creatives employed within other industries.

The sector insights mentioned above and an interactive

visualisation of the data in this report are available atwww.creativeinnovation.net.au.

In ten years time, t he workforce and working environment

will look nothing like it does today. It is within the creative

industries that these changes are being felt first and fast.

By combining big picture data with sector-specific insights,

the CIIC is now in a strong position to inform policy and

programs across government, industry and education to ensure

the creative industries continue to add value to the Australian

economy, and indeed to accelerate that growth.

Lisa Colley

Director - Creative Industries Innovation Centre

Enterprise Connect Photography:AnnaZhu


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Executivesummary

Introduction

SGS has been commissioned by the Enterprise Connect Creative Industries

Innovation Centre (CIIC) to prepare a current position report of the Australian

creative economy. The report will constitute an update of a 2009 study by the Centre

for International Economics (CIE) using the most appropriate definitions of creative

industries and including the most recent data relating to those industries.

Importance of creative industries

The United Nations Conference on Trade and Development (UNCTAD) now

recognises creative industries as a new dynamic sector in world trade. While creative

industries are often micro businesses or small to medium sized enterprises that

focus on local markets, they can develop into powerful economic clusters, helping

to drive economic growth1. However, despite widespread acknowledgement of their

importance, defining creative industries is still a matter for considerable disagreement

in academic and policy-making circles.

Basic definition

As a most basic definition, creative industries can be distinguished from other

industries in that creativity is used to create value for their consumers. While all

industries will include an element of creativity within them to a greater or lesser extent,

creative industries are different because they use creativity to create value for their

clients and the products or services created are intellectual property.

Due to their dynamic nature, the creative industries are not simply defined and consist

of a wide variety of businesses and individuals. They include cultural sectors like the

visual and performing arts, as well as those sectors that are often dubbed digital mediaor multi-media including film and television, broadcasting, computer animation, web

design and music. They also include a range of other sectors like architecture and urban

design, industrial design, designer fashion, writing and publishing.

Understanding the extent of the creative economy is even more problematic due to

the way that creative and non-creative workers and businesses intersect.

Best practice approach to definition andmeasurement (the Nesta method)

A number of different models have been put forward in recent years as a means ofproviding an understanding of the creative economy. To really understand the creative

economy we must first understand the nature of the creative workforce.

The creative workforce represents a combination of employment within creative1. UNCTAD (2010) Cre ative

Economy Report


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industries and creative occupations. The Creative Trident is Queensland University of

Technology Centre of Excellence for Creative Industries and Innovation (QUT CCI)s

methodology for expressing the different metrics of the creative occupations and

creative segments and sectors (refer to Figure 1).

Specialist creatives: those who are creatively occupied and work withinthe creative industries.

Support workers: those who are not creatively occupied but do workwithin the creative industries.

Embedded creatives: those who are creatively occupied but work outsidethe creative industries.

Figure 2.Industry gross

product of the

creative industries

($M)

Building on the UK Department of Culture Media and Sport (DCMS)s work and the

concept of the creative trident, the National Endowment for Science, Technology and

the Arts (Nesta) conducted a dynamic mapping of the UKs creative industries in 2013.

The method builds on the DCMS approach but focuses on creative intensity, that is,

the proportion of total employment within an industry that is engaged in creative

occupations. We found the Nesta method to be current best practice and have applied

this approach to the most recent Australian data.

A profile of Australias creative industries

Creative industries make a large contribution to the national economy. Based on

IBISWorld estimates of industry value added2 the industry value added of creative

2. Industry Value Added (IVA):

The market value of goods

and services produced by

the industry minus the cost

of goods and services used

in production. IVA is also

described as the industrys

contribution to GDP, or profit

plus wages and depreciation.

Figure 1.

The creative

trident.


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industries was around $32,666 million in 2011/12. However, this contribution has been

steadily declining since 2007/8.

The Industry Gross Product (IGP) growth for the creative industries is significantly

lower than the GDP average growth rate (for the three and seven year periods) for all

the industries within the Australian economy. Overall, the creative industries have

experienced a decline in IGP over the past seven years of around -1% per annum. This

compares to growth of 3% per annum in the broader economy. The reasons for this

vary across creative industry segments. For example, advertising and marketing were

affected particularly strongly by the GFC and have continued to feel its effects in thefollowing years. For other segments such as writing, publishing and print media, music

and performing arts and to a lesser extent film, television and radio, the broad effects

of economic slowdown have been compounded by the effects of technological changes

and shifting consumer preferences which have resulted in profound movement away

from the consumption of traditional media.

Within the creative industries, music and performing arts, software development

and design and visual arts show the strongest performance in terms of real annual

output growth over the past 5 years. Film television and radio remained stable and all

other industry sectors experienced a decline.

Figure 3.

Total national jobs,

2011.

Source: ABS Census, IBISWorld

Industry Reports, SGS

Economics and Planning, 2013.

Figure 4.

Employment

in creative

occupations.




EMPLOYMENT IN THE CREATIVE INDUSTRY CATEGORIES

According to the 2011 Census, there were 347,744 people employed in creative

industry categories. Software development and interactive content is the largest

category with 142,377 employees roughly 41% of total creative employees.

While total jobs in creative industry categories have maintained a steady share

of total national jobs at 3.5%, there has been considerable movement within the

creative industries. Significant employment growth was experienced in software

and interactive media with a small proportion of growth in design, music and visual

arts. Writing, publishing and print media, although maintaining its position with the

second largest share of employment, experienced falling job numbers in the last fiveyears and a declining share of employment in the creative industries.


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EMPLOYMENT IN THE CREATIVE OCCUPATION CATEGORIES

According to the 2011 Census, 432,965 people had creative occupations. This is an

increase of 21% since the 2006 Census. The creative occupations represent 4.4% of

total occupations.

In 2011, almost 40% of employment within creative occupations related to

advertising and marketing, followed by software development and interactive content

(22%) and design and visual arts (19%).

THE CREATIVE TRIDENT

The size of the total creative workforce in 2011 was 611,307 people, which represented

6.2% of total employment. Almost half of those employed in creative occupations are

working within non-creative industries i .e. almost half of the total creative workforce

are classified as embedded creatives.

This pattern for the creative workforce is repeated across Australia with embedded

creatives making up the largest proportion of the total creative workforce in all states.

In terms of the geographic concentration of creative workers, ABS Census data shows

that the creative workforce (which includes employment in the creative industries as

well as creatives embedded in other industries) is concentrated in New South Wales with

almost 40% of the workforce, followed by Victoria with 28% and Queensland with 16%.

EMBEDDED CREATIVES

Embedded creatives are found in most industry types but the three categories with the

largest proportion are: manufacturing, wholesale trade and professional scientific and

technical services. Each of these industries have more than 10% of their workforce

made up embedded creatives. Within these industry types the majority of embedded

creative are in the advertising and marketing occupation category.

Figure 5.The creative trident

2011.




Figure 6.

Embedded

creatives by

industry, 2011.

Source: SGS Economics and

Planning, 2013 using ABS

Census of Population and

Housing 2011.

Music & performing arts

Film, television & radio

Advertising & marketing

Software development & interactive content

Writing, publishing & print media

Architecture

Design & visual arts


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Figure 7.

Growth in business

numbers.

Source: ABS Catalogue

No. 8165.0

Note this ABS Catalogue does

not provide business count for

all the nfd industries.

CREATIVE BUSINESSES

At the end of June 2011, t here were 123,000 businesses operating in the creative

industries. Since 2008, there has been growth of around 2% per annum in the number

of businesses operating in the creative industry group. Around 75% of creative

businesses are turning over less than $200,000 a year, this compares to around 65%

of all businesses in Australia.

Between 2008 and 2011, the business entry and exit rates in the creative industries

broadly followed the pattern for the rest of the economy but in terms of the change in

business numbers, creative industry growth has tracked slightly higher than the restof the economy. Creative industries are generally comprised of small businesses, as is

true for businesses in the national economy. 98% of creative buinesses employ fewer

than 20 employees. Although this is also true for businesses in the national economy,

it is fair to say that creative businesses tend to be smaller with 98% employing fewer

than 20 employees.

The creative industry segments

We can divide the creative economy into distinct segments. These are summarised

as follows:

MUSIC AND PERFORMING ARTS

In 2011/12, music and performing arts contributed around 2% of total IGP

and 3% of total employment for the creative industries. In 2011, the music

and performing arts segments workforce totalled 34,277 people. Embeddedcreatives make up the majority of this workforce at 52.2%.

FILM TELEVISION AND RADIO

In 2011/12, the film, television and radio segment contributed around 14%

of total IGP and 11% of total employment for the creative industries. Pay

television experienced the highest growth in IGP between 2004/5 and

2011/12 at around 6%. Overall, the film, television and radio segment has

performed significantly below the GDP for the broader economy. In 2011,

total workforce in the film, television and radio segment totalled 42,688

people. Around half of this workforce are support workers.

ADVERTISING AND MARKETING

In 2011, the advertising and marketing segment workforce totalled 183,270

people. The largest proportion of the workforce (83.4% or 152,816 people)


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are embedded creatives i.e. advertising and marketing occupations in other

industry categories.

SOFTWARE AND INTERACTIVE CONTENT

In 2011/12, the software and interactive content segment contributed around

50% to both total IGP and total employment for the creative industries.

Internet publishing and broadcasting experienced the highest growth in IGP

and employment between 2004/5 and 2011/12. In 2011, the software and

interactive content sector workforce totalled 197,062 people. The largestproportion of the workforce (51.8%) is support workers.

WRITING PUBLISHING AND PRINT MEDIA

In 2011/12, writing, publishing and print media contributed around 18%

of total IGP and 13% of total employment for the creative industries. IGP

growth within this segment has been relatively weak compared to the

broader economy. The writing, publishing and print media sector workforce

totalled 55,645 people in 2011. The largest proportion of the workforce is

support workers and these make up 61.8% of the workforce.

ARCHITECTURE In 2011/12, the architecture segment contributed around 10% of total

IGP and 9% of total employment for the creative industries. In 2011, the

workforce of the architecture segment totalled 47,382 people. The largest

proportion of the workforce is specialist creatives which represent 44.5% of

the workforce.

DESIGN AND VISUAL ARTS

In 2011/12, design and visual arts contributed around 6% of total IGP and

9% of total employment for the creative industries. Growth in IGP for

design and visual arts is much lower than GDP growth with professional

photographic services experiencing significant decline between 2004/5

and 2011/12. In 2011, the design and visual arts workforce was 94,140

people. The largest proportion of the workforce is embedded workers which

represent 62.2% of the workforce.

Within the creative industries, the creative segments are shown to have varying

structure and varying levels of performance. Software and interactive content stands

out as being the strongest segment contributing the greatest amount (in terms of

IGP) for the creative industries. Writing, publishing and print media, although still

the second largest segment in IGP terms, has suffered declining IGP and is t he only

segment to have falling employment in the last 5 years.

The creative

sector annually

contributes $90.19

billion turnover

to the national

economy. It adds$45.89 billion in

GDP, and generates

annual exports of

$3.2 billion


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Total output,

value-added

and employment

multipliers are allhigher for creative

industries than the

equivalent values

for all Australian

industries.

The value of Australias creative industries

To measure the contribution of the Australian creative economy, SGS has used ABS

2008-09 national input output tables. The direct stimuli generated by the creative

sector results in multiple rounds of buyer and supplier transactions.

The creative sector contributes around $90.19 billion to the national economy

annually in turnover. It adds almost $45.89 billion in GDP and helps generate exports

of $3.2 billion dollars annually. Over and above this contribution, the creative

industries in Australia employ many volunteers, whose contribution is not includedwithin these estimates, as exact figures relating to the number of volunteers and

hours they commit is unavailable.

Every dollar in turnover generated by creative industries (i.e. initial revenue

stimulus) results in 3.76 times total revenue for all other industries in the Australian

economy. Similarly, each dollar in gross regional product generated by the creative

sector results in an uplift in total value-added by all industries by a factor of 3. Finally,

on average each job in creative industries (not necessari ly creative workers) supports

total employment in Australia, which is 2.92 times higher than employment in creative

industries.

Table 1.

Multipliers for

creative and other

industry sectors.


Planning calculations based on

customised Input-Output table.

^ The multipliers of non-

creative industry are averages

of the multipliers of each 1-digit

ANZSIC industry sector.

Closing remarks

This report sets out to measure and profile Australias creative industries using best

practice measurement techniques and current data. The application of the Nesta

method has revealed the extent of the creative industries in this country. Through

analysis of creative intensity and the creative trident, the study has illustrated how

pervasive the creative workforce really is. This method demonstrates just how wide

the creative workforce is spread and how embedded this workforce is in what mayappear at first glance to be non-creative industry types.

Clearly, Australias creative industries continue to have great value for the

Australian economy. However, within them, particular segments have had very

different recent fortunes. The needs and character of the industry segments and the

creative workforce and indeed the dynamics within the segments themselves will

need careful attention if the true potentials of Australias creative industries are to be

realised.


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1. Introduction

1.1 Background

The use of the words creative industry is widespread yet the act of defining creative

industries is still a matter for considerable disagreement in academic and policy-

making circles. Usage of the term creative industry varies between countries.

Appearing in Australia in 1994 in Creative Nation, Australias first national cultural

policy, it gained wider exposure in 1997 when the UK Department of Culture Mediaand Sport (DCMS) set up the Creative Industries Task Force.

A number of different models have been put forward in recent years as a means of

providing an understanding of the creative industries. Regardless of how creative

industries are defined, they are at the centre of the creative economy and indeed

make a vital contribution to the economy at large.

The United National Conference on Trade and Development (UNCTAD) now

recognises the sector as the cycles of creation, production, and distribution of

goods, noting that they focus on but are not limited to the arts and potentially

generate significant income from trade and intellectual property rights. It regards

them as a new dynamic sector in world trade.

While creative industries are often micro businesses or small to medium sized

enterprises that focus on local markets, they can develop into powerful economic

clusters, helping to drive economic growth and development by exporting their

intellectual property outside their own regions, either nationally or internationally.

There are many examples such as the West Kowloon cultural District in Hong Kong

or the Daishanzi Art District (Factory 798)3

or on a smaller scale closer to home the

loose agglomeration of professional service firms in Sydneys Sogo (south of Goulburn

Street area4.)

3. Desmond Hui (2006), From

cultural to creative industries:

Strategies for Chaoyang

District, Beijing, International

Journal of Cultural Studies,

9:317-331.

4. City of Sydney (2008)

Sydney 2030 Town Hall

House, Sydney.


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1.3 Report structure

The remainder of this report is structured as follows:

Section 2 reviews the contemporary Australian and international research fortechniques in defining and measuring creative industries and outlines the key

challenges faced by creative industries.

Section 3 defines creative occupations and industries in Australia using theNesta method.

Section 4 provides an economic profile of the creative industries, includingan overview of the creative industries at the macro level, information on

each creative industry segment, the characteristics of businesses operating

in the creative industries, location of the creative workforce and the flow-on

contribution of creative industries to the Australian economy.

Appendix A contains an update of the analysis undertaken by the CIE in the

2009 report, using the CIE definitions of creative industries and occupations.


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2. What are thecreative industries?

2.1 Introduction

While all industries to a greater or lesser extent include an element of creativity, the

creative industries can be distinguished in that value for their consumers is driven

by creativity.

Creative industries operate in a diverse range of sectors including music and

performing arts, design and visual arts, television, radio and film, marketing, financeand distribution, social media, software development and interactive content,

animation and print, writing, publishing. Techniques to measure the creative

workforce within these segments have evolved over time as set out in contemporary

Australian and international research. Over the past 10 years or so a range of

definitions for creative industries and the creative economy have been put forward.

To understand creative industries, we must first understand the nature of the creative

workforce. In this area, three main methodological approaches have emerged to

measure creative workers, with each successive approach addressing the limitations of

its predecessor.

2.2 Leading approaches to definingcreative industries

The first method to measure the workforce employed in the bundle of activities

termed as the creative industries commenced with the UK Department forCulture, Media and Sport (DCMS) 1998 creative industries mapping study. This

study defined creative industries asthose industries which have their origins in

individual creativity, skill and talent and which have a potential for wealth and job


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creation through the generation and exploitation of intellectual properties. The

DCMS recognised that the key characteristic of the creative industries is their use of

creativity for commercial purposes.

The DCMS mapping study became the template for numerous other reports

commissioned by governments at the national, regional and city level including

Creative Industries in New Zealand: Economic Contribution (2002), Creativity

Londons Core Business (2002), Brisbanes Creative Industries (2003), Economic

Contributions of Singapores Creative Industries (2003), The Development of Cultural

and Creative Industries in Taiwan and Its Significance for SMEs (2004) (Bakhshi,Cunningham and Higgs, 2008).

The DCMS method focuses on measuring the employment and business activities

within selected industrial classifications of either census of industry employment or

surveys of businesses within industries. Based on this method, creative industries

include traditional cultural sectors like the visual and performing arts, other digital

media or multi-media sectors, including computer animation, web design and music,

and others including film and television, broadcasting, architecture and urban design,

industrial design, fashion, writing and publishing.

For instance, the 1998 UK study identified 13 creative industries for analysis:

Advertising; Architecture; Art and Antiques Market; Crafts; Design; Designer

Fashion; Film and Video; Interactive Leisure Software; Music; Performing Arts;

Publishing; Software and Computer Services; and Television and Radio.

Such an industry-based classification system for defining and measuring creative

industries has some limitations. The first limitation is that of scope. Because

creativity extends beyond rigid industry groupings, a definition based on industrial

classification alone includes some industry classification codes where creativity is

not the primary activity, and excludes others where creativity is quite pronounced.

For example, the approach used by most analysts to measure the employment impactof the design segment is to count the people employed within firms in the specialist

design industries of architectural services and photographic services. However,

a significant number of designers may be embedded in other industries, such as


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business services or consultant engineering services, which may not be captured using

this approach. Altering the scope of this list to exclude or include specific industry

classifications does not solve the problem because of other definitional limitations.

This approach does not distinguish between creative and non-creative occupations

within a specified industry. These limitations reduce the utility of this method to

compare the performance of creative industry segments over time as well as between

segments, regions and countries.

An alternative approach was developed for measuring creative industries and the

creative workforce. This method looks beyond industr y codes and includes occupationdata to measure creative industries. Creative occupations are defined as a selection

of occupations that produce creative goods or services. Employees in creative

occupations may be participants at any stage of the production process but it is t he

involvement of such people primarily in creative functions (rather than, for example,

retail sales) that distinguishes them.

This method of combining occupation data and industry classifications had been

proposed in the annual DCMS Creative Industries Economic Estimates Statistical

Bulletin series, and was further developed by the Centre for Cultural Policy

Research at the University of Hong Kong. Three types of creative employment were

defined: occupations of creative production; associate profession of content/creative

production; and occupations of creative/content production in all other industries.The method addresses the data availability and industry classification shortcoming

of the DCMS Template approach. It has been cited in Baseline Study of Hong Kongs

Creative Industries (2003) and Designing the Economy: A Profile of Ontarios Design

Workforce (2004) reports (Bakhshi, Cunningham and Higgs, 2008). Combining

occupation and industry data matrices, as evidenced in the Ontario Design Study,

can help analyse cities and regions on the basis of specific occupation densities. This

method however, has also attracted criticism, in that some occupations are excluded

from the list which may be creative. Also, the criteria by which the occupations are

classified as creative are somewhat subjective. This can result in erroneous and

misleading results when measuring creative industries.

2.3 Current best practice

Building on the DCMS work and the concept of the creative trident, Nesta conducted

a dynamic mapping of the UKs creative industries in 2013. The study was undertaken,

because the UKs Department of Culture, Media and Sport (DCMS) classification of the

creative industries had not been updated since 1998 and contains inconsistencies which

need to be addressed to make it fully fit for purpose (Nesta 2013). Nesta developed an

improved methodology which builds on the DCMS approach but focuses on creative

intensity, that is, the proportion of total employment within an industry that is engaged

in creative occupations. Below is a summary of the method developed by Nesta.

A first step to a solution: defining creative occupations

Nesta developed a definition of a creative occupation and criteria to assesscreative occupations based on existing research and their own research.

Nesta defines a creative occupation as a role within the creative process thatbrings cognitive skills to bear to bring about differentiation to yield either novel, or

significantly enhanced products whose final form is not fully specified in advance

(Nesta 2013).

The criteria for assessment are contained in Figure 8.


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Step two: rating the standard occupationsusing the creative grid

All four digit occupations were examined and the value 1 assigned where theoccupation complies with the criterion and 0 where it does not.

The values were then totalled to provide an overall grid score.

A threshold of four was set for an occupation to qualify as creative.

Step three: deriving rigorous intensity measures

Creative intensity was calculated by Nesta by using the creative occupationsidentified above to determine the proportion of creatively occupied jobs within

each industry of employment. The industries were broken down into DCMS

creative and DCMS non-creative (depending on whether the industry is definedas creative by DCMS).

A threshold for creative industries was determined based on the mean andstandard deviation to determine which industries would be classified as creative

(creative intensity of 30%).

Step four: a statistically resilient baseline

Nesta refined the baseline to remove statistically volatile or unreliable codes, andderive the baseline estimate for creative employment arising from this analysis.

Figure 8.

Criteria for

assessment

of creative

occupations.

Source: Nesta, 2013.


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Testing the grid: reverse intensity and thespecialisation of employment in the creative industries

Reverse intensity was calcu lated to conduct a brief further reality check on theeconomic mode.

Reverse intensity (or occupational intensity) is the proportion of the totalemployment of a given occupation that is found within a given industry.

Sensitivity analysis

A sensitivity test was conducted to test the sensitivity of the employmentestimates to the assumptions adopted throughout the study.

The threshold creative intensity calculation performs, in effect, a reality checkon any classification of industries into creative and non-creative, highlighting

the inconsistencies and pointing to a superior classification in which these

inconsistencies are almost completely eliminated.

The sensitivity analysis provides a justification of the method adopted by Nesta.


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3. Application of theNesta method

3.1 Introduction

The method used by Bakhshi, Cunningham and Higgs in the 2013 Nesta report

emerges as the most comprehensive method for the definition of Creative Industries

through an analysis of the creative workforce. This method has been chosen in this

study for the measurement of the Australian creative economy.

3.2 Defining creative occupations

The first step in the application of t he Nesta method is the definition of t he creative

occupations. Each occupation category (ANZSCO 6-Digit) is assessed against

the criteria established by Nesta (2013). Australian Bureau of Statistics ANZSCO

definitions (2006) were consulted where further clarity was necessary, particularly

in relation to the tasks undertaken by each occupation. The criteria are repeated in

Figure 9.

Figure 9.

Criteria for

assessment of

creative

occupations.

Source: Nesta, 2013.

Where an occupation achieved a score of four or five out of five, it was considered to be

creative. The results of this analysis are contained in Table 2.SignaturePrints/P

hotography:AndrewCowen


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212400 Journalists and Other Writers, nfd 1 1 1 1 1 5212411 Copywriter 1 1 1 1 1 5212412 Newspaper or Periodical Editor 1 1 1 1 1 5212413 Print Journalist 1 1 1 1 1 5212414 Radio Journalist 1 1 1 1 1 5212415 Technical Writer 1 1 1 1 1 5212416 Television Journalist 1 1 1 1 1 5212499 Journalists and Other Writers, nec 1 1 1 1 1 5224212 Gallery or Museum Curator 1 1 1 1 1 5225000 Sales, Marketing and Public Relations Professionals, nfd 1 1 1 1 1 5225100 Advertising and Marketing Professionals, nfd 1 1 1 1 1 5

Table 2.

Creative grid of

occupations.


Planning, 2013.

Note: nfd= not further

defined, nec = not elsewhere

considered.


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225111 Advertising Specialist 1 1 1 1 1 5225112 Market Research Analyst 1 1 1 1 1 5225113 Marketing Specialist 1 1 1 1 1 5225311 Public Relations Professional 1 1 1 1 1 5232000 Architects, Designers, Planners and Surveyors, nfd 1 1 1 1 1 5232100 Architects and Landscape Architects, nfd 1 1 1 1 1 5232111 Architect 1 1 1 1 1 5232112 Landscape Architect 1 1 1 1 1 5232300 Fashion, Industrial and Jewellery Designers, nfd 1 1 1 1 1 5232311 Fashion Designer 1 1 1 1 1 5232312 Industrial Designer 1 1 1 1 1 5232313 Jewellery Designer 1 1 1 1 1 5232400 Graphic and Web Designers, and Illustrators, nfd 1 1 1 1 1 5232411 Graphic Designer 1 1 1 1 1 5232412 Illustrator 1 1 1 1 1 5232413 Multimedia Designer 1 1 1 1 1 5232414 Web Designer 1 1 1 1 1 5232511 Interior Designer 1 1 1 1 1 5232611 Urban and Regional Planner 1 1 1 1 1 5261100 ICT Business and Systems Analysts 1 1 1 1 1 5261111 ICT Business Analyst 1 1 1 1 1 5261112 Systems Analyst 1 1 1 1 1 5261200 Multimedia Specialists and Web Developers, nfd 1 1 1 1 1 5261211 Multimedia Specialist 1 1 1 1 1 5261212 Web Developer 1 1 1 1 1 5261313 Software Engineer 1 1 1 1 1 5399411 Jeweller 1 1 1 1 1 5399514 Make Up Artist 1 1 1 1 1 5399611 Signwriter 1 1 1 1 1 5399912 Interior Decorator 1 1 1 1 1 5451814 Body Artist 1 1 1 1 1 5233916 Naval Architect 1 1 1 1 1 5225212 ICT Business Development Manager 1 1 1 1 4261300 Software and Applications Programmers, nfd 1 1 1 1 4261311 Analyst Programmer 1 1 1 1 4261312 Developer Programmer 1 1 1 1 4261399 Software and Applications Programmers, nec 1 1 1 1 4312100 Architectural, Building and Surveying Technicians, nfd 1 1 1 1 4312111 Architectural Draftsperson 1 1 1 1 4312199 Architectural, Building and Surveying Technicians, nec 1 1 1 1 4

Subjective nature of Nesta method

The criteria (discussed above) for assessing whether an occupation is creative are

somewhat subjective. To ensure consistency and accuracy, the assessment was

conducted by multiple members of the project team. Where no clear decision could be

made at the end of this process, occupations were deemed to be non-creative. We are

mindful that this means that there are one or two borderline occupations that have been

excluded where an argument could still be mounted for inclusion. In this sense the SGSapplication of the method can be considered somewhat conservative.


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3.3 Creative intensity

Once identified, creative occupations were used to calculate the creative intensity of

all industries of employment. Creative intensity is a measure of the proportion of jobs

within an industr y that are occupied by creative workers. Figure 10 shows the relative

intensity, looking at both industries identified as creative and non-creative by the CIE.

The mean value for creative industries as defined in the CIE report is 55% and for

non-creative industries is 7%. In our assessment of 2006 and 2011 data, the averageof the two means, which is 31%. This is used as a benchmark to define the creative

industries in our analysis. This compares to the benchmark used in the Nesta report

of 30%.

Figure 10.

Distribution of

creatively-occupied

jobs by creative

intensity, 2011,

partitioned intoCIE creative and

CIE non-creative.


Planning, 2013.

Figure 11.

Distribution of

creatively-occupied

jobs by creative

intensity, 2006,

partitioned into

CIE creative andCIE non-creative.


Planning, 2013.

The creative intensity for employment in 2006 is illustrated in Figure 11. In 2006 the

mean for creative industries was 52% and the mean for non-creative industries was

7%. The average which is used as a benchmark to define the creative industries was

29% which is comparable to the 2011 benchmark.


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3.4 Defining creative industries

A creative intensity benchmark of 30% was used to identify which industries would be

defined as creative. Table 3 contains industries which are identified as creative by this

benchmark plus the industries which were identified within the CIE report as creative

(where they were not already identified by the benchmark).

Creative intensity benchmarks for both 2006 and 2011 have been highlighted. The

industries were also assessed on their size (less than 1000 jobs) and volatility (wherean industr y moves from creative to non-creative or vice versa).

Where an industry met the benchmark but was either small or volatile or was

defined by the CIE as creative but not by the benchmark, the industr y was evaluated

by the project team and a decision was made as to whether it was creative.

The following industries have been identified as creative:

5622 Cable and Other Subscription Broadcasting

5600 Broadcasting (except Internet), nfd

1612 Printing Support Services

5413 Book Publishing

7000 Computer System Design and Related Services

5500 Motion Picture and Sound Recording Activities, nfd

J000 Information Media and Telecommunications, nfd

5420 Software Publishing

5411 Newspaper Publishing

9000 Creative and Performing Arts Activities, nfd

5620 Television Broadcasting, nfd

5510 Motion Picture and Video Activities, nfd

5700 Internet Publishing and Broadcasting

6940 Advertising Services

5412 Magazine and Other Periodical Publishing

5400 Publishing (except Internet and Music Publishing), nfd

2591 Jewellery and Silverware Manufacturing

5410 Newspaper, Periodical, Book and Directory Publishing, nfd

5621 Free-to-Air Television Broadcasting

9001 Performing Arts Operation

5610 Radio Broadcasting

5514 Post-Production Services and Other Motion Pictureand Video Activities

5511 Motion Picture and Video Production

6921 Architectural Services

6924 Other Specialised Design Services

9002 Creative Artists, Musicians, Writers and Performers

6991 Professional Photographic Services


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Table 3.

Defining the

creative industries.


Planning, 2013.


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3.5 Reverse intensity

An analysis of reverse intensity (or occupational intensity) was conducted as a reality

check. Reverse intensity is the share of total jobs in particu lar occupation categories

that are found within a given industry. For example, 97% of television journalists are

found in creative industries the highest reverse intensity. A high reverse intensity

indicates that the occupation acts as a specialist resource for the creative industries.

The average for the creative occupations is 53%, which is higher than the average ofthe Nesta study of 41%.

Table 4.

Reverse intensity

of creative

occupations, 2011.


Planning, 2013.


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131112 Sales and Marketing Manager 89,787 6,890 8%

225112 Market Research Analyst 3,194 254 8%

312100 Architectural, Building and Surveying Technicians, nfd 189 16 8%

131114 Public Relations Manager 4,939 272 6%

451814 Body Artist 1,551 90 6%

312199 Architectural, Building and Surveying Technicians, nec 1,293 59 5%

233916 Naval Architect 330 10 3%

224212 Gallery or Museum Curator 1,099 19 2%


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4. Profile ofAustralias

creative industries4.1 Creative industries

at the macro scale

Based on IBISWorld estimates of industry value added5, the industry gross product

(IGP) of the creative industries in 2011/12 was around $32,666 million (refer to Table

5). This figure is lower than the IGP for 2010/11 $32,809 and is representative of asteady decline in IGP over the past five years.

It should be noted that although IBISWorld reports are the most comprehensive

source for business data, IBISWorld Reports were not available for a number of

ANZSIC 4 digit industries and thus analysis of IGP does not include a number of

industries such as 9002 Creative Artists, Musicians, Writers and Performers, 5600

Broadcasting (except Internet), nfd, 5500 Motion Picture and Sound Recording

Activities, nfd, 5620 Television Broadcasting, nfd, 5510 Motion Pict ure and Video

Activities, nfd, 9000 Creative and Performing Arts Activities, nfd, J000 Information

Media and Telecommunications, nfd, 5400 Publishing (except Internet and Music

Publishing), nfd, 5410 Newspaper, Periodical, Book and Directory Publishing, nfd).

Software development and interactive content is the greatest contributor to IGP of

the creative industries, contributing to nearly half of total IGP.

Industry gross product and growth

Creative industries

make a large

contribution to the

national economybut this contribution

has been steadily

declining over the

last five years.

Table 5.

Industry gross

product of the

creative industries

($ M)

Source: IBISWorld Industry

Reports, SGS Economics and

Planning.

The average contribution of the creative industries to gross domestic product (GDP)

between 2004/5 and 2011/12 was approximately 3% (refer to Figure 12).5. Industry Value Added (IVA):

The market value of goods

and services produced by

the industry minus the cost

of goods and services used

in production. IVA is also

described as the industrys

contribution to GDP, or profit

plus wages and depreciation.Wildwon/Photogr

aphy:AndrewCowen


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Figure 12.

Industry share of gdp 2004/5 to 2011/12.

Source: IBISWorld Industry Reports, ABS Catalogue 5204.0, SGS

Economics and Planning, 2013. Note: creative industries are double

counted being a part of the traditional ANZSIC divisions e.g. Arts

and recreation services may include some industries that are alsoincluded within the creative industries.

Music and

performing

arts, software

development

and design andvisual arts show

the strongest

performance in

terms of real annual

output growth over

the past 5 years

Figure 13 illustrates real annual average growth over the past three years, between

2008/9 and 2011/12, and over the past seven years, between 2004/5 and 2011/12.

Three industries have experienced growth in IGP over the past three years:

Music and performing arts

Software development

Design and visual arts

Film television and radio remained stable and all other industry sectors experienced

a decline. Overall, the creative industries experienced negative growth over the three

and seven year periods. The IGP growth for the creative industries is significantly

lower than the GDP average growth rate (for the three and seven year periods) for

the all industries within the Australian economy. The reasons for this vary across

creative industry segments. For example, advertising and marketing were affected

particularly strongly by the global financial crisis and have continued to feel its

affects in the following years. For other segments such as writing, publishing and

print media, music and performing arts and to a lesser extent film, television and

radio, the broad effects of economic slowdown have been compounded by the effectsof technological changes and shift ing consumer preferences which have resulted in

profound movement away from the consumption of traditional media.


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Figure 13.

Real annual

average growth,

2004/5 to 2011/12.


Reports, ABS Catalogue

5204.0, SGS Economics and

Planning, 2013.

Table 6.

Employment in

creative industries,

2011

Source: ABS Census of

Population and Housing, SGS


Employment in the creative industries

According to the 2011 Census, there were 347,744 people employed in the creative

industries (refer to Table 6). Software development and interactive content is the most

significant sector of employment within the creative industries representing around41% of total employment within the creative industries.

Writing publishing and print media is the

only creative industry segment with falling

employment numbers and a declining share of

national employment

6. Includes employed full-time,

employed part-time and

employed but away from work.


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Employment within the creative industries represented approximately 3.5% of total

employment in 2011 and this is illustrated in Figure 14.

Table 7 highlights the change in employment within the creative industries between

2006 and 2011. Significant employment growth was experienced in the software and

interactive media with a small proportion of growth in design and visual arts. While

overall, the creative industries have experienced limited change in t he share of total

employment (total change in share was 0.18%) between the census periods, there has

been a shift in employment numbers for particular industry segments.

Figure 14.

Industry share of

employment, 2011.


Population and Housing,

IBISWorld Industry Reports,

SGS Economics and Planning,

2013.

Table 7.

Change in

employment in


2006-2011.

Source: ABS Census ofPopulation and Housing, SGS


While creative industries have, in total, maintained

a steady share of total national jobs at 3.5%, there

has been considerable movement within the creative

industries group


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Figure 15.Weekly income

distribution, 2011.


Population and Housing, SGS


Figure 16.

Trade in the


2004/5 to 2011/12.


Reports, SGS Economics and

Planning, 2013.

Creative workers are highly valued and this is

reflected in higher than average incomes.

Income

The incomes of those employed within the creative industries are increasing. Over

20% of those employed within the creative industries in 2011 were earning $2000 or

more per week (refer to Figure 15) equivalent to $104,000 pa. This is an increase from

around 13% in 2006. The average incomes of those working in the creative industries

are significantly higher than those employed within other industries of employment.

Productivity

Creative industry imports have remained significantly higher than exports, resulting in

a steady but negative trend in net exports.


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4.2 Employment increative occupations

Employment estimates for creative occupations are contained in Table 8. According to

the 2011 Census, 432,965 people were employed within the creative occupations, which

is an increase of 21% since the 2006 Census. The creative occupations represent 4.4%

of total employment.In 2011, almost 40% of employment within creative occupations related to

advertising and marketing, followed by software development and interactive content

(22%) and design and visual arts (19%).

In 2011, almost

433,000 people were

employed in creative

occupations, which

is an increase of 21%

since 2006.Creative occupations represent

4.4% of total employment, with the

major industry of employment beingadvertising and marketing

Table 8.

Employment

in creative

occupations, 2011.




Housing 2006 and 2011.

Note: Numbers in brackets

are change between 2006

and 2011.


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Table 9.

Total creative

workforce, 2011.





Note: Numbers in brackets are

share of total employment.

4.3 Creative industriesworkforce

The creative workforce, or creative trident, includes:

SPECIALIST CREATIVESSUPPORT WORKERS EMBEDDED CREATIVES

The total creative workforce in 2011 was 611,307 people which represented 6.2% of

total employment. As highlighted in Table 9, almost half of those employed in creative

occupations are working within non-creative industries.

Those employed in creative

occupations in creative

industries.

Those employed in creative

industries in non-creative

occupations.

Those employed in

creative occupations in

non-creative industries.

Almost half of those employed in creative

occupations are working within non-creative

industries. The total creative workforce in 2011

was 611,000 people with 263,000 employed as

embedded creatives


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Figure 17 compares the creative workforce of each state in Australia alongside Sydney,the largest capital city in Australia. Within each geography, embedded workers

represent the largest proportion of the creative workforce and is the largest in the ACT

and South Australia7.

In terms of the creative trident, specialist creatives earn a lower weekly income than

embedded creatives and support workers (refer to Figure 18).

Figure 17.

Creative trident,

2011.




Housing 2011.

Figure 18.

Income by creative

trident, 2011.





7. This is in contrast to the

analysis conducted using

the CIE definition where the

largest proportion of workers

in the creative industries were

support (refer to Appendix A).


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Table 10.

Embedded

creatives in

Australia, 2011.




Housing 2011.

Note: Excludes where industry

was not stated/inadequately

described.

4.4 Embedded creatives

Embedded creatives are workers with creative occupations in other (non-creative)

industries.

The industries of employment (ANZSIC 1-Digit) of embedded creatives (by creative

occupation) are detailed in Table 10. The four major industries of employment for

embedded creatives are:

Manufacturing

Wholesale trade

Professional, scientific and technical services

Public administration and safety.


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In Sydney, NSW

and Australia as a

whole, embedded

creatives comprise

the largest

component of the

creative trident.

Table 11 details the industries of employment for all embedded creatives by state

and for Sydney. Focusing on the major industry of employment for each state, or

city, reveals a similar pattern manufacturing or public administration and safety

employing the most embedded creatives.

Table 11.

Industry of

employment

of embedded

creatives by state,

2011.

Source: SGS Economics andPlanning, 2013 using ABS


Housing 2011.


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Table 12.

Number of business 2008-2011.

Source: ABS Catalog ue No. 8165.0

Note this ABS Catalogue does not provide business

count for all the nfd industries.

4.5 Creative industryenterprises

Business Numbers

At the end of June 2011, t here were 123,000 businesses operating in the creativeindustries (refer to Table 12). Despite numbers for writing, publishing and media

and music and performing arts declining over the past 4 years, overall, there has

been some growth within creative industries. The most notable growth has been in

software development and interactive content segment.

Growth in the number of businesses in the creative industries was greater than

growth in the number businesses in the aggregate economy over this period, 2%

compared to 1%.

In 2011, there werearound 123,000

businesses operating

in the creative

industries. In broad

terms the business

entry and exit

rates for creative

industries are

comparable to the

broader economy.

Since 2008, there has been growth of

around 2% per annum in the number

of businesses operating in the creative

industries.

Between 2008 and 2011, the business entry and exit rates in the creative industries

were comparable to the rest of the economy (refer to Figure 19), however a number of

industry categories appear to be more volatile in terms of entry and exit rates these

are music and performing arts, film, television and radio, advertising and marketing,

software development and interactive content, design and visual arts.

Writing, publishing and print media stands out from the other segments due to its

relatively low entry and exit rates. This is symptomatic of an industry in stagnation

and perhaps comes as no surprise given the major structural change experienced by

this segment. Three segments have significantly higher exit than entry rates these

are: Writing publishing and print media, architecture and music and performing arts.

This is indicative of these industries being in decline in the 2008-2011 period.


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98% of creative

businesses employ

fewer than 20

employees.

A large proportion

of creative businesses

are turning over less

than $200,000 a

year.

Figure 19.

Entry and exit rates

in the creative

industries,

2008-2011.


No. 8 165.0, SGS Economics

and Planning, 2013.


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Table 13.

Business count

by number of

employees, 2011.

Source: ABS Catalogue No.


Planning, 2013.

Figure 20.

Share of business

size, 2011.



and Planning, 2013.

Scale of creative industry businesses

Creative industries are generally comprised of small businesses, as is true for

businesses in the national economy. 98% of creative buinesses employ fewer than 20

employees.

Figure 20 highlights that although 98% of all businesses in the creative industries

employ fewer than 20 employees, this is a trend which is also apparent within the

wider economy.


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Creative industry turnover

In terms of turnover, creative industries have a large proportion of businesses turning

over $200,000 or less each year (refer to Table 14).

Table 14.

Business count by

turnover, 2011.



and Planning, 2013.

Figure 21.

Business size by

turnover, 2011.



and Planning, 2013.

As illustrated in Figure 21, turnover varies slightly between creative industry segments

and the wider economy. The share of turnover in advertising and marketing and

software and interactive content is comparable to the aggregate economy.


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Table 15.

The creative

workforce by state,

2006-2011.






are change between 2006

and 2011.

4.6 Creative industrylocations

Location of the creative workforce

The creative workforce is concentrated in a few states in Australia.Table 15 highlights that the creative workforce (which includes employment in the

creative industries as well as creatives embedded in other industries) is concentrated

in New South Wales with almost 40% of the workforce, followed by Victoria with 28%

and Queensland with 16%. In the ACT however, the creative workforce represents

a larger share of total employment than within any other state or territory. In other

words, the profile of the ACT workforce is skewed more towards creatives than any

other state.

There have been marginal movements within t he share of the creative workforce in

each state between 2006 and 2011, with the creative workforce overall maintaining its

share of around 6% of the total workforce in Australia.

The creativeworkforce and

creative businesses

are heavily

concentrated in

NSW and Victoria.

Almost 40% of the creative workforce

is employeed in NSW, and nearly

30% in Victoria.


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Location of creative businesses

The pattern of the locations of creative businesses in the creative industries closely

resembles the pattern for the location of the creative workforce. A large proportion of

businesses (66%) are located in NSW and Victoria (refer to Table 16). This is followed

by Queensland, Western Australia and South Australia.

Table 16.

Creative industry

businesses by

state, 2011.

Source: ABS Catalogue 8165.0,

SGS Economics and Planning,

2013.

ZigZagLane/Pho

tography:AndrewCowen


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5. Creative industriesby segment

5.1 Music and performing arts

The music and performing arts segment includes the following industry classifications:

Creative Artists, Musicians, Writers and Performers

Creative and Performing Arts Activities, nfd9

Performing Arts Operation

In 2011/12, music and performing arts contributed around 2% of total IGP and 3% of total

employment for the creative industries.

The film,

television and

radio segments

workforce totalled

over 40,000

people, supportworkers making up

half the workforce.

The music and performing arts segment workforce in 2011 was 34,277 people (refer to

Table 17). The largest proportion of the workforce are support workers (52. 2%).

Figure 22 compares the music and performing arts sector workforces of each state

in Australia alongside Sydney. Within each geography, support creatives make up the

largest proportion of the music and performing arts sector workforce and is the largest

in the Northern Territory.

Table 17.

Music and performing arts sector

workforce (australia 2011).

Source: SGS Economics and Planning, 2013 using ABS

Census of Population and Housing 2006 and 2011.

Note: Numbers in brackets are share of totalemployment within the sector and change in share of

employment between 2006 and 2011.

Figure 22.

Music and performing arts sector

workforce, 2011.

Source: SGS Economics and Planning, 2013 using ABS

Census of Population and Housing 2011.

9. nfd stands for not fully defined. This relates to

Census entries which are not fully articulated but

which can nevertheless be broadly attributed to

categories..


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The film, television

and radio segments

workforce totalledover 40,000 people

in 2011 with half of

this workforce being

support workers.

5.2 Film, television and radio

The film, television and radio segment includes the following industry classifications:

Cable and Other Subscription Broadcasting

Broadcast ing (except Internet), nfd

Motion Picture and Sound Recording Activities, nfd

Television Broadcast ing, nfd

Motion Picture and Video Activities, nfd

Free-to-Air Television Broadcasting

Radio Broadcasting

Post-Production Services and Other Motion Picture and Video Activities

Motion Picture and Video Production

In 2011/12, the film, television and radio segment contributed around 14% of total IGP

and 11% of total employment for the creative industries.

As illustrated in Figure 23, pay television experienced the highest growth in IGP

between 2004/5 and 2011/12 at around 6%. Overall, the film, television and radio

segment has performed significantly below the GDP for the broader economy.

Figure 23.

Growth in film,

television and

radio, 2004/5 to

2011/12.




and Planning, 2013.

Table 18.

Film, television and

radio workforce

(total Australia

2011).






are share of total employment

within the sector and change in

share of employment between

2006 and 2011.


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Figure 24 compares the film, television and radio segment workforce of each state in

Australia alongside Sydney. Within each geography, support workers make up thelargest proportion of the film, television and radio segments workforce.

5.3 Advertising and marketing

The advertising and marketing segment includes the following industry classification:

Advertising services

In 2011, the advertising and marketing segment workforce totalled 183,270 people

(refer to Table 19). The largest proportion of t he workforce (83.4% or 152,816 people)

are embedded creatives i.e. advertising and marketing occupations in other industry

categories.

Figure 24.

Film, television and

radio workforce,

2011.




Housing 2011.

Table 19.

Advertising

and marketing

sector workforce

(Australia 2011).









2006 and 2011.Advertising and marketing is the second largest

segment of the creative industries in terms of

workforce size with around 180,000 people

employed. More than 80% of these workers areembedded creatives.


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Figure 25.

Advertising and

market sector

workforce, 2011.




Housing 2011.

Figure 26.Growth in software

and interactive

content, 2004/5 to

2011/12.




and Planning, 2013.

Figure 25 compares the advertising and market sector workforces of each state in

Australia alongside Sydney. Within each geography, embedded creatives make up the

largest proportion of the workforce.

5.4 Software and interactive content

The software and interactive content segment includes the following industry

classifications:

Computer system design services

Software publishing

Internet publishing and broadcasting

In 2011/12, t he software and interactive content segment contributed around 50% to

both total IGP and total employment for the creative industries.

As illustrated in Figure 26, within the software and interactive content segment,

internet publishing and broadcasting experienced the highest growth in IGP and

employment between 2004/5 and 2011/12.


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The software and interactive

content is the largest segment

within creative industries with

around 200,000 people in the

workforce. Over 50% of these are

employed as support workers

In 2011, the software and interactive content segment workforce totalled 197,062 (refer

to Table 20). Most of the workforce in this segment (51.8%) are support workers.

Figure 27 compares the software and interactive content workforces of each state

in Australia alongside Sydney. In 2011, support workers represented the largest

proportion of the software and interactive content workforce.

Table 20.

Software and

interactive content

sector workforce

(total australia

2011).









2006 and 2011.

Figure 27.

Software and

interactive content

sector workforce,

2011.




Housing 2011.


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5.5 Writing, publishingand print media

The writing, publishing and print media segment includes the following industry

classifications:

Printing Support Services

Book Publishing

Information Media and Telecommunications, nfd

Newspaper Publishing

Magazine and Other Periodical Publishing

Publishing (except Internet and Music Publishing), nfd

Newspaper, Periodical, Book and Directory Publishing, nfd

In 2011/12, writing, publishing and print media contributed around 18% of total IGP

and 13% of total employment for the creative industries.

As illustrated in Figure 28, IGP growth within this segment has been relatively

weak compared to the broader economy with total IGP growth.

Figure 28.

Growth in writing,

publishing and print

media, 2004/5 to

2011/12.


Reports, ABS Catalogue No.


Planning, 2013.

Table 21.Writing, publishing

and print media

sector workforce

(total australia

2011).


Planning, 2013 using ABS Census

of Population and Housing 2006

and 2011.

Note: Numbers in brackets are

share of total employment within

the sector and change in share

of employment between 2006

and 2011

The writing,

publishing and print

media segment

has been in decline

since 2006. In

2011, the workforce

totalled around

55,645 people with

the majority of

these being supportworkers.

The writing, publishing and print media sector workforce was 55,645 people in 2011

(refer to Table 21). The largest proportion of the workforce are support workers which

represent 61.8% of the workforce.


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Figure 29 compares the writing, publishing and print media segment workforces of

each state in Australia alongside Sydney. In 2011, support workers represented the

largest proportion of the writing, publishing and print media segment workforce in all

geographies except for the ACT where the largest proportion of the workforce within

this sector are embedded creatives. This is most likely a reflection of a large number

writing, publishing and print media professionals working in various government and

administrative positions in the ACT.

Figure 29.

Writing, publishing

and print media

sector workforce,

2011.




Housing 2011.

10. Includes Commercial art

service, Fashion design service,

Graphic design service, Interior

design service, Jewellery

design service, Signwriting,

Textile design service and

Ticket writing.

5.6 Design and visual arts

The design and visual arts segment includes the following industry classifications:

Jewellery and Silverware Manufacturing

Other Specialised Design Services 10

Professional Photographic Services

In 2011/12, design, music and visual arts contributed around 6% of total IGP and 9%

of total employment for the creative industries. Within t his segment, as illustrated

in Figure 30, growth in IGP in design and visual arts is much lower than GDP growth

with professional photographic services experiencing significant decline between2004/5 and 2011/12.

In 2011, there were around

95,000 people employed within

the design and visual arts

industry segment in Australia.

The majority of these are

embedded workers


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Figure 30.

Growth in design

and visual arts,

2004/5 to 2011/12.




and Planning, 2013.

Figure 31.

Design and visualarts, 2011.




Housing 2011.

Table 22.

Design and visual

arts workforce

(total australia

2011).









2006 and 2011.

In 2011, the design and visual arts workforce was 94,140 people (refer to Table 22).

The largest proportion of the workforce are embedded creatives which represent

62.2% of the workforce.

Figure 31 compares the structure of the design and visual arts workforces of each

state in Australia alongside Sydney. Each geography shows a similar pattern with

embedded creative dominating the workforce. The Northern Territory has a

particularly high proportion of embedded creatives (around 70%) making up the

creative workforce in this segment.


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5.7 Architecture

In 2011/12, architecture contributed around 10% of total IGP and 9% of total

employment for the creative industries

In 2011, the architecture workforce was 47,382 people (refer to Table 23). The largest

proportion of the workforce is specialist creatives which represent 44.5% of the

workforce.

Figure 32 compares the architecture workforces of each state in Australia alongsideSydney. In 2011, there was a relatively even distribution among the creative trident

with slightly higher proportions of specialist creatives in most states.

The architectural

workforce is highly

specialised. It is

the only creative

industry segment

comprised of over

30% specialist

workers.

Table 23.

Architecture

workforce (total

Australia 2011).









2006 and 2011.

Figure 32.

Architecture

workforce, 2011.




Housing 2011.

BlueSkyDesignGr

oup/Photography:AndrewCowen


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6. The value ofAustralias

creative industries6.1 Introduction

Creative industries are acknowledged as significant contributors to regional and

national economies around the world. Such is the importance of these industries,

that governments around the world, especially in the newly industrialising countries

of Singapore, China and elsewhere in East Asia, are looking to creative industries to

drive future growth of metropolitan economies (Wong and Gao 2008).Consequently, it is important that the distribution of creative industries economic

activity is accurately measured, enabling policy makers and industry professionals

to communicate key concepts, share reliable data, and make the case for greater

investment in this sector.

This section reports on the methodology used by SGS to estimate the direct and

indirect (or flow-on) contribution of the creative industries to the Australian economy.

It identifies the different types of multipliers that prospering creative industries confer

on an economy.

6.2 A purpose builtinput output model

To measure the contribution of the Australian creative economy, SGS has used 2008-

09 input-output tables (IO tables) published by the ABS in 2012. IO tables provide

a means of assessing the process of production and the use of goods and ser vices

(products), and of the income generated in that production within an economy.

These tables provide detailed information about the supply and use of products in

the Australian economy and about the structure of and inter-relationships between

Australian industries. The published tables in 2012 contain data pertaining to 2009.

The IO model structure has been incorporated into national accounting in manydeveloped countries, and as such forms an important part of measures such as Gross

Domestic Product (GDP) and Gross Regional Product (GRP). Most published studies

that measure the economic contribution of industries make use of such tables.

There are 111 industries included in the IO table. To measure the economic

co

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Valuing Australia’s Creative Industries